What distinguishes a Closed-Loop prepaid card from other payment methods?

A Closed-Loop prepaid card operates within a defined group of merchants, which is a key characteristic that separates it from other payment methods. This type of card is designed for specific use at particular retailers or service providers, often providing benefits such as discounts or loyalty rewards at those locations.

In contrast, options indicating broader merchant acceptance, like usage at any merchant nationwide, do not apply to Closed-Loop prepaid cards since their functionality is limited to predetermined merchants. The other options, such as having no expiration date or being linked to a bank account, do not specifically pertain to the defining features of Closed-Loop prepaid cards, as those characteristics can also apply to other types of cards and payment methods.